Monday, March 3, 2008

The Future Giants

My last post on the budget got me e-mails from a few of you telling me how it motivated you. I am glad that it was a source of motivation and inspiration. Every great thing starts out with motivation and inspiration. The budget came and went. Most people have gotten over it and there have been endless discussions over it.

However what has caught my attention is the interest being shown by private enterprise now in fields of agriculture. Today it is a know fact how people like Mukesh Ambani and Sunil Mittal are keen on revolutionising the agricultural sector.

The main problem in Indian agriculture today is caused due to improper distribution systems and a lack of private enterprise. Reliance Industries has always knows to bring about revolutionary changes in whichever sector they enter.

We know what happened with Dhirubhai Ambani in areas like polyester and refining. The same model can be replicated in agriculture. Today Indian agriculture is utilizing only 20% of the capacity. The reason being, farms are hesitant to produce more as the market is unable to absorb it all due to very poor systems in place. Even though food prices are rising the poor farmer doesn’t get the right price due to so many middle men and a corrupt bureaucratic system.

I know many of you might be wondering, what this has to do with the stock markets or investing? How are you related with the farmer?

The main thing about successful investing is looking at new developments and concepts which can bring about revolutions irrespective of which sector they are in. I had invested in Bharti Airtel when the telecom revolution had not started fully. Just the fact that I detected a trend helped my investment in Airtel grow exponentially.

Today I feel companies like Bharti and Reliance are at the start of what is going to be a new green evolution. Imagine over 700 million people having their incomes increase by over 5 times.

From what I can understand Mukesh Ambani plans to put money in their hands, and once they have the money make them spend on everything urban India has had for so many years. His retail venture would benefit immensely from this. More money earned means more money spent.

The potential is huge and all of us must start taking notice of it. It is always rewarding to enter a sector where development has been minimal and then revolutionize it.

In fact a recent article and report by Morgan Stanley puts Reliance Industries as a future giant among Asia’s 20 best companies. Brother Anil Ambani is there on it too with Reliance Communications. You can read more about it here at
Dr. Krishna’s blog.

The best way to invest is to plant seeds today that will turn out to be wonderful trees which bear lots of fruits in the future. Ignore the short term fluctuations now and stop worrying about the Sensex falling 500 points and invest in companies which have real fundamental growth ahead of them.

Investing can create wealth not only for us but also fuels entrepreneurship which changes lives.


Happy wealth creation and have a day filled with smiles!
© The Happionaire Blog

10 comments:

sarabjeet said...

I have been a regular reader of your blog ever since it started. I have also been reading your articles regularly on Moneycontrol.com.

I have got an interesting insight into how to invest while using my own head. Do you think Mukesh Ambani will be able to overcome the resistance faced by him from the political parties? An empowered rural India means less votes for corrupt politicians.

jatin said...

I think Mukesh will overcome political issues. He has a lot of money power to make politicians do what he wants.

It is interesting how you are talking about agriculture. I will surely look at it. Thanks

suresh said...

I am looking at RIL, shall start investing once markets stablize. I too feel the potential is huge as you mentioned Yogesh.

Your post just makes me more confident about it!

kishore said...

Don't invest as yet all your money. Markets could see bottom at 16,000.

The Happionaire™ Blog said...

We can never be too sure what the bottom is or what the top is. It is all guess work, it makes more sense to just select fundamentally strong companies and not care too much about the Sensex.

Have fun!
Yogesh Chabria

Thinkbig said...

Do you have any idea about Jai Corp Ltd which has links with Mukesh Ambani in developing SEZ's at Navi Mumbai.

Thanks.

Thinkbig said...

JAI CORP LTD. Any Idea

kiran kumar katreddi said...

Hi,
Very well written article. But it would have been helpful to us if you could share some of your hidden gems in agri sector which will be future Bharti's.

:-)

Kiran

P said...

Hi,I just now read the blog on Agriculture being a money-spinner.I doubt that agriculture could ever be a money-spinner ! It could be, for a short while, for some Corporates who have a lot of money to experiment with. Trust me, after taking VRS from the Bank, I have tried it, and so have my many friends and almost all of us, including CA's & ICWA's, failed in it.You must know that it is massively subsidized in all the countries. Our own Guru,WEB has said that among the three ways of losing money Agriculture is the surest ! (the other two being Racing and Women, with due apologies to all the bloggers, I am just quoting !) It is something like investing in Airline industries, I suppose.Please respond.

The Happionaire™ Blog said...

Well regarding JaiCorp things have been interesting the way the price has risen. Still I personally have not studied the company a lot in detail. I like your id "ThinkBig", I'm sure with a bit more research you will be able to crack the nut regarding Jaicorp.

Kiran, if you read between the lines, I am sure you will figure it out. It is more interesting to help people think for themselves rather. Don't you think so? I'm sure many of you could share lots of companies with all of us here too.

P, I do understand what you are saying. But that is one of the reasons the rewards will be so huge if things work out. Just go back and see how Bharti entered telecom or how Naresh Goyal entered aviation.

I personally feel India needs a second agricultural revolution and we can show the world how things can be done. We don't need to follow the West which personally I feel gives too many subsidies.

Once again just my thoughts and ideas and not the definite truth- but just imagine the potential it has. More than 700 million being empowered. I am sure if we all belive and work towards a goal, nothing is impossible. Fifteen years ago who would have imagined India could have reached where it has today. We still have a very long journey ahead and let us try to take our failures in our stride and continue trying.

Yogesh Chabria